M1 differs from M2 in that:
A. M2 includes savings deposits, small-denomination time deposits, and money market mutual funds that are not included in M1.
B. the assets in M2 are more liquid than the assets in M1.
C. M1 includes currency and balances held in checking accounts, which are not included in M2.
D. M1 is a broader measure of the money supply than M2.
Answer: A
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